Tencent-backed DouYu Faces CEO Arrest; Business Impacted

In a surprising turn of events, DouYu, the prominent live-streaming platform supported by Tencent Holdings, revealed on Tuesday that its CEO and chairman, Shaojie Chen, has been arrested. The company received notification of the arrest on November 20, 2023, and confirmed that Chen was taken into custody around November 16, 2023. However, DouYu expressed its lack of information regarding the cause of his arrest, rejecting any official notice about potential investigations or proceedings against Chen.

DouYu, in its statement, conveyed the lack of clarity regarding the nature and timeline of legal proceedings that might follow Chen's arrest. The ongoing detention of the CEO could significantly impact the company's reputation, business, and results of operations.

Despite the arrest, DouYu assured its users and stakeholders that its operations continue to run normally. The live-streaming platform emphasized its commitment to upholding the highest regulatory standards for compliance, assuring that the board would oversee operations during this challenging period.

Recent reports suggest that Chen's arrest might be linked to DouYu streaming content that allegedly included explicit material such as pornography and gambling. Local authorities have yet to confirm or deny these allegations, leaving the circumstances surrounding the CEO's arrest shrouded in mystery.

Chen's arrest coincides with an unexpected probe by the Cyberspace Administration of China into one of DouYu's operations. The internet regulator's involvement adds a layer of complexity to the situation, raising questions about potential connections to other high-profile disappearances, such as those of Jack Ma and Bao Fan.